Zomato Ltd.'s loss widened for the fourth straight quarter as it beefed up spending on its food delivery business.
Net loss for the restaurant discovery and food delivery company widened to Rs 360 crore in the quarter ended March, according to its exchange filing. That compares with a loss of Rs 134 crore a year earlier.
Highlights (YoY)
Revenue rose 75% to Rs 1,211 crore.
Operating loss at Rs 449 crore compared with Rs 154-crore Ebitda loss in the preceding quarter.
Gross order value at Rs 585 crore versus Rs 331 crore.
Average monthly transacting customers at 1.57 crore versus 98 lakh.
Expense on delivery and related charges more than doubled to Rs 545 crore over a year earlier. The company said its certain long-term strategic investments in certain subsidiary companies, which are in their initial or developing stage of operation, too, have incurred significant expenses for building the brand and market share, adding to their losses.
Zomato, however, said it expects the adjusted revenue growth to accelerate to double digits in the next quarter and sees adjusted Ebitda losses coming down meaningfully.
“Reduction in losses will be driven by improvement in a contribution margin of the food delivery business and also operating leverage playing out as our revenue is growing faster than our fixed costs,” it said.
The growth trajectory is back on track, and the company doesn't foresee post-Covid ramifications affecting its growth rate anymore, Deepinder Goyal, founder and chief executive at Zomato, said. "Having said that, even before Covid, growth in our business has been lumpy (and not linear)—so it is essential to take a long term view of our business."
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